☑
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
|
For the quarterly period ended September 30, 2018
|
☐
|
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
|
For the transition period from __________________ to
__________________
|
Florida
|
27-2977890
|
(State or other jurisdiction of incorporation or
organization)
|
(I.R.S. Employer Identification No.)
|
6400 Congress Avenue, Suite 2050, Boca Raton, Florida
|
33487
|
(Address of principal executive offices)
|
(Zip Code)
|
561-998-2440
|
(Registrant's telephone number, including area code)
|
not applicable
|
(
Former name, former address and former fiscal
year, if changed since last report)
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☑
|
Emerging growth company
|
☑
|
|
|
|
|
Page No.
|
|
PART I - FINANCIAL INFORMATION
|
|
|
|
|
ITEM 1.
|
FINANCIAL STATEMENTS.
|
4
|
|
|
|
ITEM 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
|
26
|
|
|
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
|
33
|
|
|
|
ITEM 4.
|
CONTROLS AND PROCEDURES.
|
33
|
|
|
|
|
PART II - OTHER INFORMATION
|
|
|
|
|
ITEM 1.
|
LEGAL PROCEEDINGS.
|
34
|
|
|
|
ITEM 1A.
|
RISK FACTORS.
|
34
|
|
|
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS.
|
34
|
|
|
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES.
|
34
|
|
|
|
ITEM 4.
|
MINE SAFETY DISCLOSURES.
|
34
|
|
|
|
ITEM 5.
|
OTHER INFORMATION.
|
35
|
|
|
|
ITEM 6.
|
EXHIBITS.
|
35
|
BRIGHT MOUNTAIN MEDIA, INC. AND SUBSIDIARIES
|
|
||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
||||||||||||||||||
(Unaudited)
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
For the Three Months Ended
|
|
|
For the Nine Months Ended
|
|
|
|
|
||||||||||
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
||||||||||
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Advertising
|
|
$
|
185,417
|
|
|
$
|
126,098
|
|
|
$
|
1,159,751
|
|
|
$
|
329,731
|
|
|
|
|
Product
|
|
|
203,485
|
|
|
|
589,402
|
|
|
|
897,536
|
|
|
|
1,713,688
|
|
|
|
|
Total revenues
|
|
|
388,902
|
|
|
|
715,500
|
|
|
|
2,057,287
|
|
|
|
2,043,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
|
|
117,175
|
|
|
|
11,669
|
|
|
|
810,744
|
|
|
|
24,031
|
|
|
|
|
Product
|
|
|
142,234
|
|
|
|
387,360
|
|
|
|
672,751
|
|
|
|
1,116,465
|
|
|
|
|
Total cost of revenue
|
|
|
259,409
|
|
|
|
399,029
|
|
|
|
1,483,495
|
|
|
|
1,140,496
|
|
|
|
|
Gross profit
|
|
|
129,493
|
|
|
|
316,471
|
|
|
|
573,792
|
|
|
|
902,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
883,478
|
|
|
|
797,268
|
|
|
|
2,985,391
|
|
|
|
2,746,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(753,985
|
)
|
|
|
(480,797
|
)
|
|
|
(2,411,599
|
)
|
|
|
(1,843,313
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
1,153
|
|
|
|
232
|
|
|
|
2,169
|
|
|
|
451
|
|
|
|
|
Interest expense
|
|
|
(16,014
|
)
|
|
|
(5,912
|
)
|
|
|
(41,217
|
)
|
|
|
(75,663
|
)
|
|
|
|
Interest expense - related party
|
|
|
(101,526
|
)
|
|
|
(95,478
|
)
|
|
|
(303,033
|
)
|
|
|
(220,610
|
)
|
|
|
|
Total other income
(expense)
|
|
|
(116,387
|
)
|
|
|
(101,158
|
)
|
|
|
(342,081
|
)
|
|
|
(295,822
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
|
(870,372
|
)
|
|
|
(581,955
|
)
|
|
|
(2,753,680
|
)
|
|
|
(2,139,135
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A and Series E preferred
stock
|
|
|
24,565
|
|
|
|
1,122
|
|
|
|
58,069
|
|
|
|
3,849
|
|
|
|
|
Total preferred stock
dividends
|
|
|
24,565
|
|
|
|
1,122
|
|
|
|
58,069
|
|
|
|
3,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to common shareholders
|
|
$
|
(894,937
|
)
|
|
$
|
(583,077
|
)
|
|
$
|
(2,811,749
|
)
|
|
$
|
(2,142,984
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per share
|
|
$
|
(0.02
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic and
diluted
|
|
|
51,728,049
|
|
|
|
45,126,811
|
|
|
|
49,388,322
|
|
|
|
44,973,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended
|
|
|||||
|
|
September 30,
|
|
|||||
|
|
2018
|
|
|
2017
|
|
||
Cash flows from operating activities:
|
|
|
|
|
|
|
||
Net
loss
|
|
$
|
(2,753,680
|
)
|
|
$
|
(2,139,135
|
)
|
Adjustments to
reconcile net loss to net cash used in operations:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
20,661
|
|
|
|
18,925
|
|
Amortization
of debt discount
|
|
|
160,355
|
|
|
|
151,843
|
|
Amortization
of intangibles
|
|
|
262,633
|
|
|
|
227,418
|
|
Stock
option compensation expense
|
|
|
19,961
|
|
|
|
95,821
|
|
Stock
issued for services
|
|
|
7,500
|
|
|
|
25,860
|
|
Gain
on sale of property and equipment
|
|
|
(749
|
)
|
|
|
—
|
|
Provision
for bad debt
|
|
|
63,051
|
|
|
|
—
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
103,940
|
|
|
|
48,925
|
|
Inventory
|
|
|
255,111
|
|
|
|
142,550
|
|
Prepaid
expenses and other current assets
|
|
|
(48,101
|
)
|
|
|
61,223
|
|
Prepaid
Services and Consulting contracts
|
|
|
(640,000
|
)
|
|
|
|
|
Other
assets
|
|
|
3,938
|
|
|
|
134,903
|
|
Accounts
payable
|
|
|
(543,891
|
)
|
|
|
(203,673
|
)
|
Accrued
expense
|
|
|
15,978
|
|
|
|
39,236
|
|
Accrued
interest - related party
|
|
|
16,550
|
|
|
|
10,958
|
|
Deferred
rents
|
|
|
(1,335
|
)
|
|
|
16,692
|
|
Deferred revenue
|
|
|
(3,770
|
)
|
|
|
—
|
|
Net
cash used in operating activities
|
|
|
(3,061,848
|
)
|
|
|
(1,368,454
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Purchase
of property and equipment
|
|
|
(1,213
|
)
|
|
|
(14,305
|
)
|
Cash
received for sale of property and equipment
|
|
|
2,100
|
|
|
|
—
|
|
Cash
paid for acquisition, net of cash received
|
|
|
—
|
|
|
|
(207,802
|
)
|
Net
cash provided by (used in) investing activities
|
|
|
887
|
|
|
|
(222,107
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Proceeds
from issuance of preferred stock
|
|
|
375,000
|
|
|
|
200,000
|
|
Proceeds
from issuance of common stock, net of commissions
|
|
|
3,636,000
|
|
|
|
50,000
|
|
Repayments
on insurance premium notes payable
|
|
|
(52,041
|
)
|
|
|
(53,643
|
)
|
Dividend
payments
|
|
|
(54,685
|
)
|
|
|
—
|
|
Principal
repayment on notes payable
|
|
|
(429,924
|
)
|
|
|
(113,078
|
)
|
Long-term
debt - related parties
|
|
|
-
|
|
|
|
1,460,000
|
|
Net
cash provided by financing activities
|
|
|
3,474,350
|
|
|
|
1,543,279
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash
|
|
|
413,389
|
|
|
|
(47,282
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
140,022
|
|
|
|
162,795
|
|
Cash and cash equivalents at end of period
|
|
$
|
553,411
|
|
|
$
|
115,513
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information
|
|
|
|
|
|
|
|
|
Cash
paid for:
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
158,192
|
|
|
$
|
92,783
|
|
|
|
|
|
|
|
|
|
|
Non-cash investing and financing activities
|
|
|
|
|
|
|
|
|
Premium finance loan payable recorded as
prepaid
|
|
$
|
—
|
|
|
$
|
18,885
|
|
Beneficial conversion of debt discount to
additional paid in capital
|
|
$
|
—
|
|
|
$
|
615,625
|
|
Valuation
of common stock warrants
issued to Spartan Capital
|
|
$
|
380,409
|
|
|
$
|
—
|
|
Accounts receivable charged against notes
payable - Daily Engage Media
|
|
$
|
19,525
|
|
|
$
|
—
|
|
Common stock issued for acquisition of
Daily Engage Media
|
|
$
|
—
|
|
|
$
|
429,091
|
|
Notes payable issued for acquisition of
Daily Engage Media
|
|
$
|
—
|
|
|
$
|
380,000
|
|
Adjustment to Goodwill for undisclosed
liability assumed in the acquisition of Daily Engage
Media
|
|
$
|
197,500
|
|
|
$
|
—
|
|
Stock issued for prepaid services and
consulting agreements
|
|
$
|
750,000
|
|
|
$
|
—
|
|
|
|
|
At Acquisition
|
|
|
|
Liability Assumed
|
|
|
|
|
Adjustment
|
|
|
|
|
|
Measurement Date
|
|
Tangible assets acquired
|
|
$
|
361,770
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
|
$
|
361,770
|
|
Liabilities assumed
|
|
|
(562,006
|
)
|
|
|
(197,500
|
)
|
(1)
|
|
|
—
|
|
|
|
|
|
(759,506
|
)
|
Net liabilities assumed
|
|
$
|
(200,236
|
)
|
|
$
|
(197,500
|
)
|
|
|
$
|
—
|
|
|
|
|
$
|
(397,736
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange platform
|
|
$
|
50,000
|
|
|
$
|
—
|
|
|
|
$
|
(50,000
|
)
|
(2)
|
|
|
$
|
—
|
|
Tradename
|
|
|
150,000
|
|
|
|
—
|
|
|
|
|
(118,000
|
)
|
(2)
|
|
|
|
32,000
|
|
Customer relationships
|
|
|
250,000
|
|
|
|
—
|
|
|
|
|
(63,000
|
)
|
(2)
|
|
|
|
187,000
|
|
Non-compete agreements
|
|
|
192,000
|
|
|
|
—
|
|
|
|
|
(114,000
|
)
|
(2)
|
|
|
|
78,000
|
|
Unallocated purchase price
|
|
|
446,426
|
|
|
|
197,500
|
|
|
|
|
345,000
|
|
(2)
|
|
|
|
988,926
|
|
Total purchase price
|
|
$
|
1,088,426
|
|
|
$
|
197,500
|
|
|
|
$
|
—
|
|
|
|
|
$
|
1,285,926
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||
|
|
September 30, 2017
|
|
|
September 30, 2017
|
|
||
Total revenue
|
|
$
|
1,076,113
|
|
|
$
|
3,442,272
|
|
Total expenses
|
|
|
(1,947,279
|
)
|
|
|
(5,846,274
|
)
|
Preferred stock dividend
|
|
|
(1,122
|
)
|
|
|
(3,849
|
)
|
Net loss attributable to common shareholders
|
|
$
|
(872,288
|
)
|
|
$
|
(2,407,851
|
)
|
Basic and diluted net loss per share
|
|
$
|
(0.02
|
)
|
|
$
|
(0.05
|
)
|
|
|
September 30,
2018
|
|
|
December 31,
2017
|
|
||
Product inventory: clocks and watches
|
|
$
|
183,909
|
|
|
$
|
453,852
|
|
Product inventory: other inventory
|
|
|
194,896
|
|
|
|
180,064
|
|
Total inventory balance
|
|
|
378,805
|
|
|
|
633,916
|
|
Less: inventory allowance for slow moving
|
|
|
(22,448
|
)
|
|
|
(22,448
|
)
|
Total inventory balance, net
|
|
$
|
356,357
|
|
|
$
|
611,468
|
|
|
|
September 30,
2018
|
|
|
December 31,
2017
|
|
||
Prepaid rent
|
|
$
|
2,954
|
|
|
$
|
50,417
|
|
Prepaid insurance
|
|
|
15,497
|
|
|
|
92,322
|
|
Prepaid inventory
|
|
|
15,382
|
|
|
|
2,993
|
|
Prepaid services and consulting agreements, current
|
|
|
310,000
|
|
|
|
—
|
|
|
|
$
|
343,833
|
|
|
$
|
145,732
|
|
|
Useful Lives
|
|
September 30, 2018
|
|
|
December 31, 2017
|
|
||
Furniture and fixtures
|
3-5 years
|
|
$
|
78,857
|
|
|
$
|
78,994
|
|
Computer equipment
|
3 years
|
|
|
59,511
|
|
|
|
59,511
|
|
Leasehold improvements
|
5 years
|
|
|
39,384
|
|
|
|
39,384
|
|
Total property and equipment
|
|
|
|
177,752
|
|
|
|
177,889
|
|
Less: accumulated depreciation
|
|
|
|
(109,050
|
)
|
|
|
(88,389
|
)
|
Total property and equipment, net
|
|
|
$
|
68,702
|
|
|
$
|
89,500
|
|
|
|
September 30,
2018
|
|
|
December 31,
2017
|
|
||
Website Acquisition Assets
|
|
$
|
1,367,189
|
|
|
$
|
1,417,189
|
|
Less: accumulated amortization
|
|
|
(963,457
|
)
|
|
|
(812,575
|
)
|
Less: accumulated impairment loss
|
|
|
(211,197
|
)
|
|
|
(211,197
|
)
|
Website Acquisition Assets, net
|
|
$
|
192,535
|
|
|
$
|
393,417
|
|
|
Useful Lives
|
|
September 30, 2018
|
|
|
December 31, 2017
|
|
||
Tradename
|
5 years
|
|
|
182,000
|
|
|
|
300,000
|
|
Customer relationships
|
5 years
|
|
|
439,000
|
|
|
|
502,000
|
|
Non-compete agreements
|
5-8 years
|
|
|
198,000
|
|
|
|
312,000
|
|
Total Intangible Assets
|
|
|
$
|
819,000
|
|
|
$
|
1,114,000
|
|
Less: accumulated amortization
|
|
|
|
(207,750
|
)
|
|
|
(95,999
|
)
|
Less: accumulated impairment loss
|
|
|
|
(50,227
|
)
|
|
|
(50,227
|
)
|
Intangible assets, net
|
|
|
$
|
561,023
|
|
|
$
|
967,774
|
|
|
|
For the three months ended
|
|
|
For the three months ended
|
|
||||||||||||||||||
|
|
September 30, 2018
|
|
|
September 30, 2017
|
|
||||||||||||||||||
|
|
Products
|
|
|
Advertising
|
|
|
Total
|
|
|
Products
|
|
|
Advertising
|
|
|
Total
|
|
||||||
Revenues
|
|
$
|
203,485
|
|
|
$
|
185,417
|
|
|
$
|
388,902
|
|
|
$
|
589,402
|
|
|
$
|
126,098
|
|
|
$
|
715,500
|
|
Intangible amortization
|
|
$
|
21,694
|
|
|
$
|
28,033
|
|
|
$
|
49,727
|
|
|
$
|
31,267
|
|
|
$
|
44,609
|
|
|
$
|
75,876
|
|
Depreciation
|
|
$
|
3,025
|
|
|
$
|
4,784
|
|
|
$
|
7,809
|
|
|
$
|
6,468
|
|
|
$
|
309
|
|
|
$
|
6,777
|
|
Loss from operations
|
|
$
|
(328,942
|
)
|
|
$
|
(425,043
|
)
|
|
$
|
(753,985
|
)
|
|
$
|
(528,446
|
)
|
|
$
|
47,649
|
|
|
$
|
(480,797
|
)
|
Segment assets
|
|
$
|
1,264,661
|
|
|
$
|
3,774,049
|
|
|
$
|
5,038,710
|
|
|
$
|
1,393,662
|
|
|
$
|
2,062,153
|
|
|
$
|
3,455,815
|
|
Purchase of assets
|
|
$
|
1,213
|
|
|
$
|
—
|
|
|
$
|
1,213
|
|
|
$
|
—
|
|
|
$
|
207,802
|
|
|
$
|
207,802
|
|
|
|
For the nine months ended
|
|
|
For the nine months ended
|
|
||||||||||||||||||
|
|
September 30, 2018
|
|
|
September 30, 2017
|
|
||||||||||||||||||
|
|
Products
|
|
|
Advertising
|
|
|
Total
|
|
|
Products
|
|
|
Advertising
|
|
|
Total
|
|
||||||
Revenues
|
|
$
|
897,536
|
|
|
$
|
1,159,751
|
|
|
$
|
2,057,287
|
|
|
$
|
1,713,688
|
|
|
$
|
329,731
|
|
|
$
|
2,043,419
|
|
Intangible amortization
|
|
$
|
116,301
|
|
|
$
|
146,332
|
|
|
$
|
262,633
|
|
|
$
|
93,801
|
|
|
$
|
133,617
|
|
|
$
|
227,418
|
|
Depreciation
|
|
$
|
9,014
|
|
|
$
|
11,647
|
|
|
$
|
20,661
|
|
|
$
|
16,753
|
|
|
$
|
2,172
|
|
|
$
|
18,925
|
|
Loss from operations
|
|
$
|
(1,052,112
|
)
|
|
$
|
(1,359,487
|
)
|
|
$
|
(2,411,599
|
)
|
|
$
|
(1,373,721
|
)
|
|
$
|
(469,592
|
)
|
|
$
|
(1,843,313
|
)
|
Segment assets
|
|
$
|
1,264,661
|
|
|
$
|
3,774,049
|
|
|
$
|
5,038,710
|
|
|
$
|
1,393,662
|
|
|
$
|
2,062,153
|
|
|
$
|
3,455,815
|
|
Purchase of assets
|
|
$
|
1,213
|
|
|
|
—
|
|
|
$
|
1,213
|
|
|
$
|
14,305
|
|
|
$
|
207,802
|
|
|
$
|
222,107
|
|
●
|
standard
anti-dilution provisions;
|
|
|
●
|
become
subject to a “cashless exercise” under certain
conditions; and
|
|
|
●
|
certain
call provisions at $0.01 per warrant if our stock trades at or
above $1.50 per share for 10 consecutive trading days with an
average daily trading volume of not less than 30,000 shares during
such 10 consecutive trading day period.
|
|
|
Number of
Options
|
|
|
Weighted Average
Exercise
Price
|
|
|
Weighted Average
Remaining
Contractual
Term
|
|
|
Aggregate
Intrinsic
Value
|
|
||||
Balance Outstanding, December 31, 2017
|
|
|
2,027,000
|
|
|
$
|
0.37
|
|
|
|
5.4
|
|
|
$
|
543,626
|
|
Granted
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Exercised
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Forfeited
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Expired
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Balance Outstanding, September 30, 2018
|
|
|
2,027,000
|
|
|
$
|
0.37
|
|
|
|
4.7
|
|
|
$
|
704,756
|
|
Exercisable at September 30, 2018
|
|
|
1,834,000
|
|
|
$
|
0.38
|
|
|
|
4.4
|
|
|
$
|
693,616
|
|
|
|
|
|
Options Outstanding
|
|
|
Options Exercisable
|
|
|||||||||||||||||||
|
Range or
Exercise Price
|
|
|
Number
Outstanding
|
|
|
Remaining
Average
Contractual Life
(In Years)
|
|
|
Weighted
Average
Exercise
Price
|
|
|
Number
Exercisable
|
|
|
Weighted
Average
Exercise
Price
|
|
|
Remaining Average
Conversion Life
(In Years)
|
|
|||||||
|
|
0.14 - 0.24
|
|
|
|
720,000
|
|
|
|
0.8
|
|
|
$
|
0.14
|
|
|
|
720,000
|
|
|
$
|
0.14
|
|
|
|
.09
|
|
|
|
0.25 - 0.49
|
|
|
|
351,000
|
|
|
|
0.8
|
|
|
$
|
0.28
|
|
|
|
351,000
|
|
|
$
|
0.28
|
|
|
|
.08
|
|
|
|
0.50 - 0.85
|
|
|
|
956,000
|
|
|
|
3.1
|
|
|
$
|
0.67
|
|
|
|
763,000
|
|
|
$
|
0.66
|
|
|
|
2.7
|
|
|
|
|
|
|
|
2,027,000
|
|
|
|
4.7
|
|
|
$
|
0.37
|
|
|
|
1,834,000
|
|
|
$
|
0.38
|
|
|
|
4.4
|
|
●
|
returned 1,000,000 shares of previously designated 10% Series B
Convertible Preferred Stock, 2,000,000 shares of previously
designated 10% Series C Convertible Preferred Stock and 2,000,000
shares of previously designated 10% Series D Convertible Preferred
Stock to the status of authorized but undesignated and unissued
shares of our blank check preferred stock as there were no shares
of any of these series outstanding and no intention to issue any
such shares in the future; and
|
|
|
●
|
created three new series of preferred stock, 12% Series F-1
Convertible Preferred Stock (“Series F-1”) consisting
of 2,177,233 shares, 6% Series F-2 Convertible Preferred Stock
(“Series F-2”) consisting of 1,408,867 shares, and 10%
Series F-3 Convertible Preferred Stock (“Series F-3”)
consisting of 757,917 shares.
|
●
|
$1,075,000
principal amount and accrued but unpaid interest due Mr. Speyer
under 12% Convertible Promissory Notes maturing between September
26, 2021 and April 10, 2022 for 2,177,233 shares of our newly
created Series F-1 Convertible Preferred Stock in full satisfaction
of those notes;
|
|
|
●
|
$660,000
principal amount and accrued but unpaid interest due Mr. Speyer
under 6% Convertible Promissory Notes maturing between April 19,
2022 and July 27, 2022 for 1,408,867 shares of our newly created
Series F-2 Convertible Preferred Stock in full satisfaction of
those notes; and
|
|
|
●
|
$300,000
principal amount and accrued but unpaid interest due Mr. Speyer
under 10% Convertible Promissory Notes maturing between August 1,
2022 and August 30, 2022 for 757,197 shares of our newly created
Series F-3 Convertible Preferred Stock in full satisfaction of
those notes.
|
User metrics:
|
Third quarter 2018 financial results:
|
|
|
For the three months ended
|
|
|
Nine months ended
|
|
||||||||||||||||||||||||||
|
|
September 30,
|
|
|
September 30,
|
|
||||||||||||||||||||||||||
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
|
% Change
|
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
|
% Change
|
|
||||||||
Advertising
|
|
$
|
185,417
|
|
|
$
|
126,098
|
|
|
$
|
59,319
|
|
|
|
47.0
|
%
|
$
|
|
1,159,751
|
|
|
$
|
329,731
|
|
|
$
|
830,020
|
|
|
|
251.7
|
%
|
Product
sales
|
|
|
203,485
|
|
|
|
589,402
|
|
|
|
(385,917
|
)
|
|
|
(65.5)
|
%
|
|
897,536
|
|
|
|
1,713,688
|
|
|
|
(816,152
|
)
|
|
|
(47.6
|
)%
|
|
Total
revenue
|
|
$
|
388,902
|
|
|
$
|
715,500
|
|
|
$
|
(326,598
|
)
|
|
|
(45.6)
|
%
|
$
|
2,057,287
|
|
|
$
|
2,043,419
|
|
|
$
|
13,868
|
|
|
|
0.7
|
%
|
|
|
For the three months ended
|
|
|
Nine months ended
|
|
|
||||||||||||||||||||||||||||||
|
|
September 30,
|
|
|
September 30,
|
|
|
||||||||||||||||||||||||||||||
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
|
% Change
|
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
|
% Change
|
|
|||||||||||||
Advertising
|
|
$
|
117,175
|
|
|
$
|
11,669
|
|
|
$
|
105,506
|
|
|
|
904.2
|
%
|
|
$
|
810,744
|
|
|
$
|
24,031
|
|
|
$
|
786,713
|
|
|
|
3,273.7
|
%
|
|||||
Product
sales
|
|
|
142,234
|
|
|
|
387,360
|
|
|
|
(245,126
|
)
|
|
|
(63.3)
|
%
|
|
|
672,751
|
|
|
|
1,116,465
|
|
|
|
(443,714
|
)
|
|
|
(39.7
|
)%
|
|||||
Total
cost of revenue
|
|
$
|
259,409
|
|
|
$
|
399,029
|
|
|
$
|
(139,620
|
)
|
|
|
(35.0)
|
%
|
|
$
|
1,483,495
|
|
|
$
|
1,140,496
|
|
|
$
|
342,999
|
|
|
|
30.1
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Advertising
revenues as a percentage of gross profit margin
|
|
|
37
|
%
|
|
|
90
|
%
|
|
|
|
|
|
|
|
|
|
|
30
|
%
|
|
|
93
|
%
|
|
|
|
|
|
|
|
|
|||||
Product
sales as a percentage of gross profit margin
|
|
|
30
|
%
|
|
|
32
|
%
|
|
|
|
|
|
|
|
|
|
|
25
|
%
|
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
For the nine months ended
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
|
September
30,
|
|
|
September 30,
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
Change
|
|
% Change
|
|
2018
|
|
2017
|
|
|
Change
|
|
% Change
|
||||||||||||||||||||||||||||||||||||
Selling,
general and administrative expenses
|
|
$
|
883,478
|
|
|
$
|
797,268
|
|
|
$
|
86,210
|
|
|
|
10.8
|
%
|
|
$
|
2,985,391
|
|
|
$
|
2,746,236
|
|
|
$
|
255,028
|
|
|
|
|
8.7%
|
|
||||||||||||||||||||
SG&A
as a percentage of total revenues
|
|
|
231
|
%
|
|
|
111
|
%
|
|
|
|
|
|
|
|
|
|
|
146
|
%
|
|
|
134
|
%
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
For the Nine Months Ended
|
|
||||||||||
|
|
September 30,
|
|
|
September 30,
|
|
||||||||||
Unaudited
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
||||
Net loss
|
|
$
|
(870,372
|
)
|
|
$
|
(581,955
|
)
|
|
$
|
(2,753,680
|
)
|
|
$
|
(2,139,135
|
)
|
plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock compensation expense
|
|
|
5,755
|
|
|
|
21,983
|
|
|
|
19,961
|
|
|
|
95,821
|
|
Stock issued for services
|
|
|
7,500
|
|
|
|
-
|
|
|
|
7,500
|
|
|
|
25,860
|
|
Adjusted net loss
|
|
|
(857,117
|
)
|
|
|
(559,972
|
)
|
|
|
(2,726,219
|
)
|
|
|
(2,017,454
|
)
|
Depreciation expense
|
|
|
7,809
|
|
|
|
6,777
|
|
|
|
20,661
|
|
|
|
18,925
|
|
Amortization expense
|
|
|
49,727
|
|
|
|
75,876
|
|
|
|
262,633
|
|
|
|
227,418
|
|
Interest expense
|
|
|
117,539
|
|
|
|
101,390
|
|
|
|
344,250
|
|
|
|
296,273
|
|
Adjusted EBITDA
|
|
$
|
(682,042
|
)
|
|
$
|
(375,929
|
)
|
|
$
|
(2,098,675
|
)
|
|
$
|
(1,474,838
|
)
|
|
|
September 30,
2018
|
|
|
December 31,
2017
|
|
||
Total current assets
|
|
$
|
1,946,854
|
|
|
$
|
1,776,992
|
|
Total current liabilities
|
|
$
|
1,353,136
|
|
|
$
|
2,105,234
|
|
Working capital (deficit)
|
|
$
|
593,718
|
|
|
$
|
(328,242
|
)
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
||
Net cash (used in) operating activities
|
|
$
|
(3,061,848
|
)
|
|
$
|
(1,368,454
|
)
|
Net cash provided by (used in) investing activities
|
|
$
|
887
|
|
|
$
|
(222,107
|
)
|
Net cash provided by financing activities
|
|
$
|
3,474,350
|
|
|
$
|
1,543,279
|
|
No.
|
|
Exhibit Description
|
|
Form
|
|
Date Filed
|
|
Number
|
|
Herewith
|
|
|
|
|
|
|
|
|
|
|
|
|
Amended
and Restated Articles of Incorporation
|
|
Form
10
|
|
3/31/13
|
|
3.3
|
|
|
|
|
Articles
of Amendment to the Amended and Restated Articles of
Incorporation
|
|
8-K
|
|
7/9/13
|
|
3.3
|
|
|
|
|
Articles
of Amendment to the Amended and Restated Articles of
Incorporation
|
|
8-K
|
|
11/16/13
|
|
3.4
|
|
|
|
|
Articles
of Amendment to the Amended and Restated Articles of
Incorporation
|
|
8-K
|
|
12/30/13
|
|
3.4
|
|
|
|
|
Articles
of Amendment to the Amended and Restated Articles of
Incorporation
|
|
10-K
|
|
3/31/14
|
|
3.5
|
|
|
|
|
Articles
of Amendment to the Amended and Restated Articles of
Incorporation
|
|
8-K
|
|
7/28/14
|
|
3.6
|
|
|
|
|
Articles
of Amendment to the Amended and Restated Articles of
Incorporation
|
|
10-K/A
|
|
4/1/15
|
|
3.5
|
|
|
|
|
Articles
of Amendment to the Amended and Restated Articles of
Incorporation
|
|
8-K
|
|
12/4/15
|
|
3.7
|
|
|
|
|
Amended
and Restated Bylaws
|
|
Form
10
|
|
3/31/13
|
|
3.2
|
|
|
|
3.10
|
|
Articles
of Amendment to the Amended and Restated Articles of
Incorporation
|
|
8-K
|
|
11/13/18
|
|
3.10
|
|
|
|
Form of
unit warrants
|
|
10-K
|
|
4/2/18
|
|
4.1
|
|
|
|
|
Form of
placement agent warrants
|
|
10-K
|
|
4/2/18
|
|
4.2
|
|
|
|
10.1
|
|
New
Lease
|
|
|
|
|
|
|
|
Filed
|
10.2
|
|
Finder’s
Agreement dated October 31, 2018 by and between Spartan Capital
Securities, LLC and Bright Mountain Media, Inc.
|
|
|
|
|
|
|
|
Filed
|
10.3
|
|
Note
Exchange Agreement dated November 7, 2018 by and between W. Kip
Speyer and Bright Mountain Media, Inc.
|
|
8-K
|
|
11/13/18
|
|
10.1
|
|
|
10.4
|
|
Promissory
Note dated October 3, 2018 in the principal amount of $75,000 from
Kubient, Inc.
|
|
|
|
|
|
|
|
Filed
|
31.1
|
|
Rule
13a-14(a)/15d-14(a) certification of Chief Executive
Officer
|
|
|
|
|
|
|
|
Filed
|
31.2
|
|
Rule
13a-14(a)/15d-14(a) certification of principal financial and
accounting officer
|
|
|
|
|
|
|
|
Filed
|
32.1
|
|
Section
1350 certification of Chief Executive Officer and principal
financial and accounting officer
|
|
|
|
|
|
|
|
Filed
|
101.INS
|
|
XBRL
Instance Document
|
|
|
|
|
|
|
|
Filed
|
101.SCH
|
|
XBRL
Taxonomy Extension Schema Document
|
|
|
|
|
|
|
|
Filed
|
101.CAL
|
|
XBRL
Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
|
|
|
Filed
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
|
|
Filed
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
|
|
|
Filed
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
|
Filed
|
|
BRIGHT MOUNTAIN MEDIA, INC.
|
|
|
|
|
November 20, 2018
|
By:
|
/s/ W. Kip Speyer
|
|
|
W. Kip Speyer, Chief Executive Officer,
principal financial and accounting officer
|
|
|
|
|
|
|